Law of Demand
What will be an ideal response?
Theres an inverse (or negative) relationship between the price of good or services and the quantity of it that consumers are willing to purchase.
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The above table has the total revenue and total cost schedule for Omar, a perfectly competitive grower of rutabagas. Omar's total profit is maximized when he produces ________ bushels of rutabagas
A) 3 B) 5 C) 6 D) 8 E) 7
Defenders of advertising argue that firms use advertising as a signal of quality, even if the advertising delivers little helpful information about the product
a. True b. False Indicate whether the statement is true or false
Which of the following is correct?
a. Inflation impedes financial markets in their role of allocating savings to alternative investments. b. Inflation encourages savings through the tax treatment on capital gains. c. Inflation encourages larger holdings of currency by the public. d. Inflation reduces people's real purchasing power.
Judging from the production possibilities curve, how many units of housing can be gained by dropping production of food from 80 to 60 units?
A. 0
b. 4
c. 7
d. 9